Fiscal 2013 second quarter revenues of $387.9 million grew 4%, as compared to the prior year quarter, primarily due to an increase in revenues in the MSG Media segment. Adjusted operating cash flow ("AOCF")(1) of $108.3 million increased 37%, as compared to the prior year quarter, primarily due to an increase in AOCF in the MSG Media segment and improved AOCF results in the MSG Sports segment, partially offset by a decrease in AOCF in the MSG Entertainment segment. Fiscal 2013 second quarter operating income of $81.0 million grew 69% and net income of $46.9 million ($0.60 per diluted share) increased 83%, both as compared to the prior year quarter.

Results for the fiscal 2013 second quarter were impacted by the NHL work stoppage and the New York Knicks' return to a full regular season schedule. The NHL work stoppage delayed the start of the 2012-13 regular season by approximately three months to January 19, 2013 and has led to a shortened 48-game regular season. As a result of the work stoppage, the New York Rangers did not play preseason or regular season games in the fiscal 2013 second quarter versus playing a combined 38 home and away games in the fiscal 2012 second quarter.

The New York Knicks played a combined 36 preseason and regular season home and away games during the fiscal 2013 second quarter. During the prior year quarter, the NBA work stoppage delayed the start of the 2011-12 regular season by approximately two months to December 25, 2011 resulting in the Knicks only playing a combined six preseason and regular season home and away games in the fiscal 2012 second quarter.

President and CEO Hank Ratner said: "Our Company delivered strong results in our fiscal second quarter, while navigating through the delayed start of the NHL season and the impact of Hurricane Sandy. The second phase of the Transformation has been enthusiastically received by all of our key customers, including season ticket holders, suite holders and marketing partners, and we now look forward to the successful completion of the final phase of this historic project this upcoming offseason. We remain confident that our Company is well-positioned to drive long-term growth and ongoing value creation for our shareholders."

Results from Operations

Segment results for the quarters ended December 31, 2012 and 2011 are as follows:

Revenues

AOCF

Operating Income (Loss)

$ millions

F'Q2

2013

F'Q2

2012

%

Change

F'Q2

2013

F'Q2

2012

%

Change

F'Q2

2013

F'Q2

2012

%

Change

MSG Media

$156.8

$142.4

10%

$95.6

$63.6

50%

$90.2

$53.1

70%

MSG Entertainment

151.1

151.2

(0)%

30.0

37.2

(19)%

26.2

33.0

(20)%

MSG Sports

89.9

88.6

1%

(14.5)

(19.9)

27%

(18.3)

(24.2)

24%

Other (includes eliminations)

(9.9)

(9.2)

(7)%

(2.9)

(1.7)

(74)%

(17.1)

(13.9)

(22)%

Total Company

$387.9

$373.0

4%

$108.3

$79.1

37%

$81.0

$48.0

69%

Note: Does not foot due to rounding

1. See definition of adjusted operating cash flow ("AOCF") included in the discussion of non-GAAP financial measures below.

MSG Media

For the fiscal second quarter, MSG Media revenues of $156.8 million grew 10%, as compared to the prior year period. Affiliate fee revenue increased $5.2 million, as compared to the prior year quarter, primarily attributable to higher affiliation rates, with the overall increase largely offset by the net impact of recorded provisions that are not expected to be recurring. Advertising revenue increased $5.1 million, as compared to the prior year quarter, primarily due to higher sales generated from professional sports programming, resulting mainly from an increase in the number of Knicks telecasts, partially offset by the absence of NHL telecasts. In addition, Fuse advertising revenue increased, as compared to the prior year quarter. Other net revenues increased $4.1 million, as compared to the prior year quarter, primarily attributable to a short-term programming licensing agreement. AOCF of $95.6 million increased 50% and operating income of $90.2 million increased 70%, both as compared to the prior year quarter, primarily due to lower direct operating expenses and higher revenues.

MSG Entertainment

For the fiscal second quarter, MSG Entertainment revenues of $151.1 million were essentially flat, as compared to the prior year period. Higher event-related revenues at The Theater at Madison Square Garden and other net increases were offset by lower revenues for the Radio City Christmas Spectacular franchise and lower event-related revenues at the Beacon Theatre. Lower revenues for the Radio City Christmas Spectacular franchise include a decrease in revenues for the New York production, which was significantly impacted by Hurricane Sandy. AOCF of $30.0 million decreased 19% and operating income of $26.2 million decreased 20%, both as compared to the prior year quarter, primarily due to an increase in direct operating expenses, which include a $5.0 million impairment charge related to a production of the Radio City Christmas Spectacular that played in three markets outside of New York.

MSG Sports

For the fiscal second quarter, MSG Sports revenues of $89.9 million increased 1% as compared to the prior year period. Total segment revenues increased primarily due to the Knicks' return to a full regular season schedule, mostly offset by the impact of the NHL work stoppage. The net impact of these two items resulted in higher league distributions and inter-segment broadcast rights revenue, mostly offset by lower professional sports team food, beverage and merchandise revenues, suite rental fee revenue, and professional sports team preseason and regular season ticket-related revenue. In addition, event-related revenues from other live sporting events decreased, as compared to the prior year quarter. AOCF loss improved by $5.4 million to a loss of $14.5 million and operating loss improved by $5.9 million to a loss of $18.3 million, both as compared to the prior year quarter, primarily due to lower direct operating expenses and, to a lesser extent, higher revenues and lower selling, general and administrative expenses.

About The Madison Square Garden Company

The Madison Square Garden Company is a fully-integrated sports, media and entertainment business. The Company is comprised of three business segments: MSG Sports, MSG Media and MSG Entertainment, which are strategically aligned to work together to drive the Company's overall business, which is built on a foundation of iconic venues and compelling content that the company creates, produces, presents and/or distributes through its programming networks and other media assets. MSG Sports owns and operates the following sports franchises: the New York Knicks (NBA), the New York Rangers (NHL), the New York Liberty (WNBA), and the Connecticut Whale (AHL). MSG Sports also features the presentation of a wide variety of live sporting events including professional boxing, college basketball, bull riding and tennis. MSG Media is a leader in production and content development for multiple distribution platforms, including content originating from the Company's venues. MSG Media's television networks consist of regional sports networks, MSG Network and MSG+, collectively referred to as MSG Networks; and Fuse, a national television network dedicated to music. MSG Networks also include high-definition channels, MSG HD and MSG+ HD, and Fuse includes its high-definition channel, Fuse HD. MSG Entertainment is one of the country's leaders in live entertainment. MSG Entertainment creates, produces and/or presents a variety of live productions, including the Radio City Christmas Spectacular featuring the Radio City Rockettes. MSG Entertainment also presents or hosts other live entertainment events such as concerts, family shows and special events in the Company's diverse collection of venues. These venues consist of Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, the Forum in Inglewood, CA, The Chicago Theatre, and the Wang Theatre in Boston, MA. More information is available at www.themadisonsquaregardencompany.com.

We define adjusted operating cash flow ("AOCF"), which is a non-GAAP financial measure, as operating income (loss) before 1) depreciation, amortization and impairments of property and equipment and intangible assets, 2) share-based compensation expense or benefit, and 3) restructuring charges or credits. Because it is based upon operating income (loss), AOCF also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to either the distortive effects of fluctuating stock prices or the settlement of an obligation that is not expected to be made in cash.

We believe AOCF is an appropriate measure for evaluating the operating performance of our business segments and the company on a consolidated basis. AOCF and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and AOCF measures as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators. AOCF should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Since AOCF is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of AOCF to operating income (loss), please see the first table below.

This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.